(XAU/USD) Holds Above Key Support - Cautiously Bullish
Updated
1H Timeframe
Current Price: 2503.40
The Gold Spot (XAU/USD) recently broke below the critical 2500 level but has rebounded to 2503.40. This recovery above the major Support/Resistance pivot point at 2500 is crucial and indicates potential bullish resilience in the market.
Key points:
1-Murrey Math Lines:
The price briefly dipped below the 1/8 Major S/R Pivot Point at 2500 but quickly recovered, suggesting that buyers are stepping in at this level.
Holding above 2500 could signal the end of the recent bearish pressure, with potential to move back toward the 1/8 Top of Trading Range at 2519.53.
2-Volume:
The increased volume on the recent dip and recovery hints at strong buying interest near the 2500 level, a bullish sign of accumulation.
3-MACD and RSI:
MACD is close to a bullish crossover, indicating that momentum might soon shift in favor of the bulls.
RSI remains neutral around 45, showing no extreme conditions, which allows for potential upward movement without immediate overbought concerns.
Conclusion:
The price breaking below and then recovering above 2500 shows the level’s significance. As long as the price remains above 2500, the outlook turns cautiously bullish.
• Short-term outlook: Cautiously Bullish
• Price Target: 2519.53
This analysis suggests that while the market shows signs of recovery, traders should remain watchful. The price action above 2500 is encouraging for bulls, but confirmation is needed to ensure that the recent dip was a false break rather than the start of a deeper correction.
Current Price: 2503.40
The Gold Spot (XAU/USD) recently broke below the critical 2500 level but has rebounded to 2503.40. This recovery above the major Support/Resistance pivot point at 2500 is crucial and indicates potential bullish resilience in the market.
Key points:
1-Murrey Math Lines:
The price briefly dipped below the 1/8 Major S/R Pivot Point at 2500 but quickly recovered, suggesting that buyers are stepping in at this level.
Holding above 2500 could signal the end of the recent bearish pressure, with potential to move back toward the 1/8 Top of Trading Range at 2519.53.
2-Volume:
The increased volume on the recent dip and recovery hints at strong buying interest near the 2500 level, a bullish sign of accumulation.
3-MACD and RSI:
MACD is close to a bullish crossover, indicating that momentum might soon shift in favor of the bulls.
RSI remains neutral around 45, showing no extreme conditions, which allows for potential upward movement without immediate overbought concerns.
Conclusion:
The price breaking below and then recovering above 2500 shows the level’s significance. As long as the price remains above 2500, the outlook turns cautiously bullish.
• Short-term outlook: Cautiously Bullish
• Price Target: 2519.53
This analysis suggests that while the market shows signs of recovery, traders should remain watchful. The price action above 2500 is encouraging for bulls, but confirmation is needed to ensure that the recent dip was a false break rather than the start of a deeper correction.
Trade closed manually
Price partial rise and struggle to reach the target.
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